DOI QR코드

DOI QR Code

Influence of Competitor and Customer Orientation on Marketing Performance through IT Competence in Chinese SMEs

  • Yu, Jiatong (Cooperative Dept. of Techno-Management, Dongguk University) ;
  • Moon, Tae-Soo (School of Management, Dongguk University)
  • Received : 2019.10.29
  • Accepted : 2019.11.26
  • Published : 2019.12.31

Abstract

Purpose This study examines the roles of firm-level IT competence in the relationship between marketing orientation and marketing performance in the context of Chinese SMEs. To achieve this goal, this study presents and empirically tests a model of how competitor orientation and customer orientation can be exploited to positively influence marketing performance through IT competence. Design/methodology/approach The competitor orientation and customer orientation are based on the market orientation construct developed by Trainor et al. (2011). IT competence re based on the market orientation construct developed by Reitz et al. 2018) and the marketing performance are based on the performance construct developed by Hooley et al., (2005). To complete the investigation, we conducted a survey in China from February 2019 to April 2019. Randomly contacted 150 Chinese SMEs, including SMEs of all sizes and types. To test our hypotheses, partial least squares (PLS) method was employed. Findings The findings indicate that customer orientation is antecedent to IT competence, while competitor orientation has no significant relationship with IT competence. This study provides a better understanding of the connection between IT competence and firm performance. So companies should focus on shaping customer-oriented culture and training IT competence.

References

  1. Auh, S., and Menguc, B., "Performance implications of the direct and moderating effects of centralization and formalization on customer orientation," Industrial Marketing Management, Vol. 36, No. 8, 2007, pp. 1022-1034. https://doi.org/10.1016/j.indmarman.2006.02.010
  2. Baker, W., and Sinkula, J., "The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses," Journal of Small Business Management, Vol. 47 No. 4, 2009, pp. 443-464. https://doi.org/10.1111/j.1540-627X.2009.00278.x
  3. Bassellier, G., and Benbasat, I., "Business Competence of Information Technology Professionals: Conceptual Development and Influence on IT-Business Partnerships," MIS Quarterly, Vol. 28 No. 4, 2004, pp. 673-694. https://doi.org/10.2307/25148659
  4. Benitez-Amado, J., Llorens-Montes, F.J., and Perez-Arostegui, M.N., "Information technology-enabled intrapreneurship culture and firm performance," Industrial Management & Data Systems, Vol. 110, No. 4, 2010, pp. 550-66. https://doi.org/10.1108/02635571011039025
  5. Bharadwaj, A.S., "A resource-based perspective on information technology capability and firm performance: an empirical investigation," MIS Quarterly, Vol. 24, No. 1, 2000, pp. 169-96. https://doi.org/10.2307/3250983
  6. Bitner, M.J., Amy, L.O., and Felicia N.M., "Service Blueprinting: APractical Technique for Service Innovation, Center for Services Leadership," Arizona State University, 2007, Working Paper.
  7. Chakravarty, A., Grewal, R., and Sambamurthy, V., "Information echnology Competencies, Organizational Agility, and Firm Performance: Enabling and Facilitating Roles," Information Systems Research, Vol. 24, No. 4, 2013, pp. 976-997. https://doi.org/10.1287/isre.2013.0500
  8. Chin, W.W., "The partial least squares approach for structural equation modeling," Modern methods for business research, 1998, pp. 295-336.
  9. Choi, Y., Jeon, B., and Kim H., "Big data analytics, Facebook fan page, Sweepstakes, Customer engagement, FCB grid model, Social media marketing," Journal of Information Systems, Vol. 26, No. 2, 2017, pp. 01-23. https://doi.org/10.5859/KAIS.2017.26.1.1
  10. Day, G.S., and Wensley, R., "Assessing advantage: A framework for diagnosing competitive superiority," Journal of Marketing, Vol. 52, No. 2, 1988, pp. 1-20. https://doi.org/10.1177/002224298805200401
  11. Fatemeh, R., Charles, M., and Lars, H., "Business process management and IT management: The missing Integration," International Journal of Information Management, Vol. 36, 2016, pp. 142-154. https://doi.org/10.1016/j.ijinfomgt.2015.10.004
  12. Fornell, C., and Larcker, D.D., "Evaluating structural equation models with unobservable variables and measurement error," Journal of Marketing Research, Vol. 18, 1981, pp. 39-50. https://doi.org/10.1177/002224378101800104
  13. Frambach, R.T., Fiss, P.C., and Ingenbleek, P.T., "How important is customer orientation for firm performance? A fuzzy set analysis of orientations, strategies, and environments," Journal of Business Research, Vol. 69, No. 4, 2016, pp. 1428-1436. https://doi.org/10.1016/j.jbusres.2015.10.120
  14. Gounaris, S., Tanyeri, M., Avlonitis, G.J., and Giannopoulos, A.A., "Balanced market orientation: Qualitative findings on a fragile equilibrium," Managing Service Quality: An International Journal, Vol. 22, No. 6, 2012, pp. 565-579. https://doi.org/10.1108/09604521211287543
  15. Gu, B., Park, J., and Konana, P., "The impact of external word-of-mouth sources on retailer sales of high-involvement products," Information Systems Research, Vol. 23, No. 1, 2012, pp. 182-196. https://doi.org/10.1287/isre.1100.0343
  16. Hair, F., Jr, J., Sarstedt, M., Hopkins, L., and Kuppelwieser, V., "Partial least squares structural equation modeling (PLS-SEM)," European Business Review, Vol. 26, No. 2, 2014, pp. 106-121. https://doi.org/10.1108/EBR-10-2013-0128
  17. Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., Ketchen, D. J., Hair, J. F., Hult, G. T. M., and Calantone, R. J., "Common Beliefs and Reality about Partial Least Squares," Organizational Research Methods, Vol. 17, No. 2, 2014, pp. 182-209. https://doi.org/10.1177/1094428114526928
  18. Hooley, G.J., Greenley, G.E., Cadogan, J,W., and Fahy, J., "The performance impact of marketing resources," Journal of Business Research, Vol. 58, 2005, pp. 18-27. https://doi.org/10.1016/S0148-2963(03)00109-7
  19. Hu, L., and Bentler, P.M., "Fit Indices in Covariance Structure Modeling: Sensitivity to Under parameterized Model Misspecification," Psychological Methods, Vol. 3, No. 4, 2007, pp. 424-453. https://doi.org/10.1037/1082-989X.3.4.424
  20. Huang, R., Zmud, R.W., and Price, R.L., "Influencing the effectiveness of IT governance practices through steering committees and communication policies," Europian Journal of Information Systems, Vol. 19, No. 3, 2010, pp. 288-302.
  21. Kim, G., Shin, B., Kim, K.K., and Lee, H.G., "IT capabilities, process-oriented dynamic capabilities, and firm financial performance," Journal of the Association for Information Systems, Vol. 12, No. 7, 2011, pp. 487-517. https://doi.org/10.17705/1jais.00270
  22. Lee, O., Sambamurthy, K.D.V., Lim, K.H., and Wei, K.K., "How Does IT Ambidexterity Impact Organizational Agility?" Information Systems Research, Vol. 26, No. 2, 2015, pp. 398-417. https://doi.org/10.1287/isre.2015.0577
  23. Mikalef, P., "Developing IT-Enabled Dynamic Capabilities: A Service Science Approach. In Perspectives in Business Informatics Research," Perspectives in Business Informatics Research, Vol. 194, 2014, pp. 87-100.
  24. Mills, A.M., and Smith, T.A., "Knowledge management and organizational performance: a decomposed view," Journal of Knowledge Management, Vol. 15, No. 1, 2011, pp. 156-71. https://doi.org/10.1108/13673271111108756
  25. Mithas, S., Ramsubbu, N., and Sambamurthy, V., "How information management capability influences firm performance," MIS Quarterly, Vol. 35, No. 1, 2011, pp. 237-56. https://doi.org/10.2307/23043496
  26. Narver, J. C. and Slater, S. F., "The effect of a market orientation on business profitability," Journal of Marketing, Vol. 54, No. 4, 1990, pp. 20-35. https://doi.org/10.1177/002224299005400403
  27. Neneh, B.N., "Customer orientation and SME performance: the role of networking ties," African Journal of Economic and Management Studies, Vol. 9, No. 2, 2018, pp. 178-196. https://doi.org/10.1108/AJEMS-03-2017-0043
  28. Newman, A., Prajogo, D., and Atherton, A., "The influence of market orientation on innovation strategies," Journal of Service Theory and Practice, Vol. 26, No. 1, 2016, pp. 72-90. https://doi.org/10.1108/JSTP-02-2015-0044
  29. Park, S., and Oh, C., "The 4th Industrial Revolution's Impact on Network Marketing - Focused on ABN Korea Case," Journal of Information Systems, Vol. 26, No. 4, 2016, pp. 379-400. https://doi.org/10.5859/KAIS.2017.26.4.379
  30. Ray, G., Muhanna, W.A., and Barney, J.B., "Information Technology and the Performance of the Customer Service Process: A Resource-based Analysis," MIS Quarterly, Vol. 29, No. 4, 2005, pp. 625-652. https://doi.org/10.2307/25148703
  31. Reed, K., Goolsby, J.R., and Johnston, M.K., "Listening in and out: Listening to customers and employees to strengthen an integrated market-oriented system," Journal of Business Research, Vol. 69, No. 9, 2016, pp. 3591-3599. https://doi.org/10.1016/j.jbusres.2016.01.002
  32. Reitz, A., Jentsch, C., and Beimborn, D., "How to Decompress the Pressure - The Moderating Effect of IT Flexibility on the Negative Impact of Governmental Pressure on Business Agility," International Conference on System Sciences, 2018, pp. 4613-4620.
  33. Ristiyanti, H., Sony, H.P., and IHALAUW, J.J., "Does an SME Hotel Adopt Customer Orientation?" Journal Ilmiah Ekonomi, Vol. 14, No.1, Juni 2019, pp. 79-91.
  34. Sambamurthy, V. and Zmud, R.W., "The organizing logic of IT activities in the digital era: a prognosis of practice and a call for research," Information Systems Research, Vol. 11, No. 2, 2000, pp. 105-114. https://doi.org/10.1287/isre.11.2.105.11780
  35. Slater, S.F. and Narver, J.C., "The positive effect of a market orientation on business profitability: A balanced replication," Journal of Business Research, Vol. 48, No. 1, 2000, pp. 69-73. https://doi.org/10.1016/S0148-2963(98)00077-0
  36. Steinman, C., Deshpande, R. and Farley, J.U., "Beyond Market Orientation: When Customers and Suppliers Disagree," Journal of the Academy of Marketing Science, Vol. 28, 2000, pp. 109-119. https://doi.org/10.1177/0092070300281010
  37. Teece, D.J., "Explicating dynamic capabilities: the nature and micro foundations of (sustainable) enterprise performance," Strategic Management Journal, Vol. 28, No. 13, 2007, pp. 1319-1350. https://doi.org/10.1002/smj.640
  38. Trainor, K.J., Rapp, A., Beitelspacher, L.S. and Schillewaert, N., "Integrating information technology and marketing: An examination of the drivers and outcomes of e-Marketing capability," Industrial Marketing Management, Vol. 40, No. 1, 2011, pp. 162-174. https://doi.org/10.1016/j.indmarman.2010.05.001
  39. Wilden, R., and Gudergan, S.P., "The impact of dynamic capabilities on operational marketing and technological capabilities: Investigating the role of environmental turbulence," Journal of the Academy of Marketing Science, Vol. 43, No. 2, 2015, pp. 181-199. https://doi.org/10.1007/s11747-014-0380-y
  40. Wixom, B.H., and Todd, P.A., "A theoretical integration of user satisfaction and technology acceptance," Information Systems Research, Vol. 16, No. 1, 2005, pp. 85-102. https://doi.org/10.1287/isre.1050.0042
  41. Yu, J., and Lee, Y., "Examining the effect of social CRM competence and capability on CRM performance: empirical evidence from enterprises in China," The Journal of Internet Electronic Commerce Research, Vol. 18, No. 6, 2019, pp. 85-103.
  42. Yu, Q., Dorothy A., Bradley, R., and Yu, A.H., "Enhancing firm performance through internal market orientation and employee organizational commitment," The International Journal of Human Resource Management, Vol. 30, No. 6, 2019, pp. 964-987. https://doi.org/10.1080/09585192.2017.1380059
  43. Zhang, J., Jiang, Y., Shabbir, R., and Zhu, M., "How brand orientation impacts B2B service brand equity? An empirical study among Chinese firms," Journal of Business & Industrial Marketing, Vol. 31, No. 1, 2016, pp. 83-98. https://doi.org/10.1108/JBIM-02-2014-0041